The Ghana Revenue Authority (GRA) has introduced the Real-Time Value Added Tax (RTVAT) Framework to collect VAT on cross-border digital services. This move aims to boost efficiency in revenue mobilisation and close the VAT gap. The GRA, under the leadership of Commissioner General Anthony Kwasi Sarpong, launched the VAT compliance campaign on September 22, 2026. The RTVAT Framework is powered by the Sentinal system and is a mechanism to identify, monitor, and collect VAT on qualifying transactions.
The RTVAT Framework is not a new tax, but a timely, accurate, and transparent mechanism for collecting VAT that is already due on cross-border digital services. The framework applies to transactions that meet three conditions: the payment instrument is issued in Ghana, the merchant is non-resident, and the service is supplied electronically. This includes online subscriptions and streaming, cloud services, online gaming, and other digital services. Both registered and non-registered non-resident digital service providers are in scope.
The GRA has registered about 167 non-resident e-commerce businesses, which mobilise an average of GH¢43 million monthly and contribute an estimated GH¢515 million in VAT annually. However, a significant VAT gap still remains. The RTVAT Framework aims to ensure fairness, as local digital businesses already charge VAT, and foreign businesses must also contribute. The framework ensures timeliness, accuracy, transparency, and levels the playing field.
For customers and taxpayers, the experience is seamless, and they can continue to use their normal payment channels. The VAT is collected through participating payment platforms, and the customer pays a VAT-inclusive total. The VAT component is automatically separated and remitted to GRA. Customers will be notified via SMS when the VAT is deducted. The applicable rate is 15% VAT plus a combined levy of 5% for GETFund and NHIL, a combined 20%.
For merchants, non-resident digital service providers, the GRA's policy has not changed: every non-resident supplying taxable digital services to consumers in Ghana must register for VAT. There is no threshold. Registered providers must display prices exclusive of VAT and notify customers that VAT is applicable at the point of payment. Non-registered providers are required to register with GRA through the Authority's online portal.
For participating financial institutions, integration with the RTVAT Framework is mandatory. Regulated entities that process qualifying cross-border digital service transactions must integrate with the framework. This includes banks, payment service providers, electronic money issuers, and other regulated or licensed entities processing qualifying transactions. These institutions shall collect and remit the VAT to GRA.
The introduction of RTVAT is part of the GRA's reforms to make the remaining taxes work better. The reforms aim to abolish nuisance taxes and unify VAT at 15%. Elsie Appau-Klu Esq., a Lawyer and Technical Advisor to the Commissioner-General of the Ghana Revenue, chairs the Modified Taxation Implementation Committee and serves as the National Coordinator for the Sustained Tax Education Programme.
Key points
- The RTVAT Framework aims to ensure fairness and efficiency in revenue mobilisation by collecting VAT on cross-border digital services.
- The framework applies to transactions that meet three conditions: the payment instrument is issued in Ghana, the merchant is non-resident, and the service is supplied electronically.
- Integration with the RTVAT Framework is mandatory for participating financial institutions.
